A guide to financial help for elderly parents

As your parents age, you might find yourself worrying about how they will manage financially. Whether you’re considering taking on caregiving responsibilities or helping them access benefits, there are many ways of providing financial help for the elderly.

On this page, we look at how you can best help elderly parents, including options for care and ideas for getting more from their income.

If you’re looking for ways to offer financial help for elderly parents, the first thing you could do is make sure they are getting every bit of financial support they’re entitled to. The UK benefits system offers various forms of help for older people and their carers, but many people are missing out. In fact, research shows that 80% of eligible pensioner households aren’t claiming their benefits, potentially losing out on an average of £1,231 a year. That’s why it can be worth reading up on the different types of financial support for the elderly.

To make things a bit easier, there are several free benefits calculators available online where you can check what your parents are entitled to. For example, there’s a handy calculator provided by the charity Turn2us. If your parents aren’t particularly tech-savvy, you can help them by making sure you have all the necessary income details before getting started.

Financial assistance for older adults can help with everything from paying bills to covering caregiving costs or simply topping up their monthly income. However, the rules for claiming benefits in the UK can be fairly complex. Some benefits require you to qualify for another first, while others depend on whether you’re already claiming certain benefits.

Here are some of the most common forms of financial help for the elderly:

• Personal Independence Payment (PIP): This helps cover extra costs for those with a long-term health condition or disability that affects daily life or mobility. It’s available to people aged 16 up to state pension age and isn’t affected by your income or savings.

• Attendance allowance: Attendance Allowance is a weekly payment for those over state pension age who need help with personal care due to a severe disability. Like PIP, it’s not affected by income or savings. 

• Pension Credit: Pension Credit is an extra benefit for those who are retired and of pension age. Pension Credit can open the door to additional benefits, such as:

  • Housing benefit

  • Council tax reduction

  • Free TV licence (if your parents are over 75)

  • Warm home payment

• Winter Fuel Payments: This is a payment of between £100 and £300 to help with winter heating bills. Currently, it’s available to all eligible pensioners, but in the future, it may only be open to those receiving Pension Credit. Given that many pensioners are missing out on Pension Credit, it might be worth checking this for your parents first. Note that these payments might not be available in Scotland.

For more details on financial help for the elderly, you can get a complete overview on the government webpage.

While your parents likely receive the state pension, and possibly income from a private pension, it can help to find out what else they could be earning. To help your elderly parents earn more from their savings, you might start by checking if they’re getting a good interest rate. Switching savings accounts can be an easy way to potentially increase their income without much effort.

Consider whether your parents need regular access to their savings, or if they’re comfortable locking money away for a higher rate. There are options for both scenarios. 

You can use our savings marketplace to compare high-interest savings accounts and see how much extra they could earn based on their deposit amount. Plus, Raisin UK also offers a range of accessibility options and support, making it easier for your parents to manage their accounts and get the help they need

It might not be enough to provide financial help for elderly parents. If it gets to the point where your elderly parents are struggling to manage their finances, you might need to step in. For those who want to take control of elderly parents’ finances in the UK, the usual course of action is to set up a power of attorney. This can also be a sensible precaution to take, even if everything seems fine right now. By planning ahead, you can help avoid potential issues with their finances down the road.

Yes. When considering financial help for the elderly, you will probably need to think about care options. You can receive financial support for caring for your elderly parents in the UK. If you spend at least 35 hours a week looking after a parent who receives certain disability benefits, you might be eligible for Carer’s Allowance, which is currently £81.90 per week. 

Keep in mind, Carer’s Allowance is a fixed amount, so you won’t get extra if you’re caring for both parents. Similarly, if both you and another family member are caring for your parent, only one of you can claim Carer’s Allowance.

Besides Carer’s Allowance, there are other types of financial support available:

• Carer’s Credit: This helps you build up your National Insurance record if you’re caring for someone but not earning enough to pay National Insurance contributions. This way, you stay on track to qualify for the basic state pension.

• Universal Credit: This means-tested benefit can help with living costs if your income is low. It might provide additional support for expenses related to caring for your elderly parents.

• Bereavement support: If you’re dealing with funeral expenses after a loss, there’s financial help available to help with these costs.

Deciding to leave your job to care for your elderly parents is a big decision and not one to be taken lightly. Before making this choice, it might be worth considering some alternatives, like talking to your employer about a career break or flexible working hours.

If you’re juggling work with caregiving or thinking about moving to caring for your parents full-time, you’re entitled to a carer’s assessment. This will help you understand what support you and your parents might need.

Quitting your job can have major financial effects. It could be helpful to look at your savings, expenses, and long-term goals to understand how this decision might impact your financial situation. Creating a budget can help with this.

Beyond boosting their income and claiming benefits, there are several ways to help your elderly parents save money on everyday expenses. We’ve listed just some things they might be able to get for free or at a discount:

• Prescriptions and eye tests: Everyone over 60 is entitled to free prescriptions and eye tests. Your parents can also get vouchers to help with the cost of glasses and contact lenses.

• Free dental treatment: If they are already on certain benefits, they might qualify for free dental care.

• Free bus travel: Depending on their age and circumstances, they may qualify for a free bus pass.

• Discounted rail travel: Various railcards are available for older adults, offering discounts on train and underground travel.

• OAP discounts: Many cultural attractions and services offer special rates for seniors, so it’s always worth asking about any available discounts.

If you’re looking for a savings account to help your parents earn more money on their funds, our marketplace offers attractive rates from various UK banks and building societies. Simply register for a Raisin UK Account, log in, and apply today to get started. It’s completely free.